Norwegian oil services company Aker Solutions reported an increase in profits and revenues as its orders almost doubled in the second quarter of 2018 compared to the previous year amid a recovery in activity.a

In its Q2 2018 report on Thursday, Aker Solutions reported that its orders totaled NOK 5,7 billion (US$703 million) for the quarter, bringing the backlog to NOK 37 billion (US$4,6 billion), with the majority of projects coming from Norway. Revenue rose to NOK 6,3 billion in the second quarter of 2018 from NOK 5,4 billion a year earlier, driven by increased modification work in the North Sea and continued progress on a number of key projects.

The company's net profit rose to NOK 117 million, from NOK 33 million in the same quarter of the previous year.

Aker Solutions noted that it is on track with its program to increase cost efficiency across the business by at least another 20% in the four years ending December 2021.

“While the market remains very competitive, activity is increasing as lower breakeven costs and higher oil prices spur project sanctions,” said Aker Solutions CEO Luis Araujo.

“Our order volume in the quarter was almost double the same period last year and we are seeing high order activity in our key markets,” said Araujo.

Looking ahead, Aker Solutions said the outlook for oil services remains competitive and there is pressure on prices. Still, there are even more signs of recovery amid lower break-even costs and higher oil prices.

Brazil is one of the main assets

According to the company, bidding activity is high in the company's main markets. Aker Solutions is offering contracts totaling around NOK 50 billion. Around two-thirds of these are in the subsea area, where the company expects some key projects to be awarded in the next six to 12 months, including in Brazil, the UK, Africa and Asia-Pacific.

Aker Solutions sees global revenue rise by around 10% in 2018 from 2017, helped by strong order intake in the first half and continued high bidding activity.  Do you want to work at Aker Solutions? Click here to access some company e-mails.